On December 11, 2024, Gildan Activewear’s Glenn J. Chamandy was let go of his position as president, CEO, and co-founder due to a board decision. Gildan shares fell 10 percent after the announcement.
In a statement, Chamandy states, “I received notice from the Chairman of Gildan Activewear’s Board of Directors that the Company was terminating my employment agreement without cause. It is unfortunate that my vision of the path forward has differed from that of other Board members.”
Rumors of succession disagreements have circulated as the main cause of termination. Chamandy owns roughly 3.4 million Gildan shares.
According to the company, former Fruit of the Loom executive Vince Tyra will be his replacement starting Feb. 12.
However, Los Angeles-based hedge fund Browning West and Toronto-based investment management firm Turtle Creek Asset Management have demanded the company reinstate Chamandy. Browning holds a roughly four percent stake in Gildan; Turtle Creek has a roughly 3.3-percent position, according to a regulatory filing last September.
Browning West shared a letter signed by company founders Usman Nabi and Peter Lee. It states: “The board’s poor handling of succession and questionable judgment when it comes to its most important responsibility and decision have put Gildan’s business and shareholders at great risk.”
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